THE YORK WATER COMPANY

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1 Supplement No. 122 To THE YORK WATER COMPANY RATES, RULES AND REGULATIONS GOVERNING THE DISTRIBUTION OF WATER IN THE CITY OF YORK BOROUGHS OF EAST PROSPECT, GLEN ROCK, HALLAM, JACOBUS, JEFFERSON, LOGANVILLE, MANCHESTER, MOUNT WOLF, NEW FREEDOM, NEW SALEM, NORTH YORK, RAILROAD, SEVEN VALLEYS, SHREWSBURY, SPRING GROVE, WEST YORK, YORK HAVEN AND YORKANA, AND TOWNSHIPS OF CODORUS, CONEWAGO, EAST MANCHESTER, HELLAM, HOPEWELL, JACKSON, LOWER WINDSOR, MANCHESTER, NEWBERRY, NORTH CODORUS, NORTH HOPEWELL, PARADISE, SHREWSBURY, SPRINGETTSBURY, SPRINGFIELD, SPRING GARDEN, WEST MANCHESTER, WEST MANHEIM, WINDSOR AND YORK, IN YORK COUNTY, PENNSYLVANIA, AND THE BOROUGHS OF ABBOTTSTOWN AND CARROLL VALLEY, AND TOWNSHIPS OF BERWICK, CUMBERLAND, OXFORD, HAMILTON, READING, MOUNT PLEASANT AND UNION IN ADAMS COUNTY, PENNSYLVANIA ISSUED: March 13, 2017 EFFECTIVE: March 16, 2017 By: Jeffrey R. Hines President and CEO 130 East Market Street York, Pennsylvania

2 Supplement No. 122 To One Hundred Tenth Revised Page No. 2 York, Pennsylvania One Hundred Ninth Revised Page No. 2 LIST OF CHANGES MADE BY THIS SUPPLEMENT CHANGES This tariff supplement authorizes Water replace cusmer service lines for a limited period of time in accordance with the Pennsylvania Public Utility Commission Order at Docket No. P , entered March 8, ISSUED: March 13, 2017 EFFECTIVE: March 16, 2017

3 Supplement No. 122 To One Hundred Ninth Revised Page No. 3 York, Pennsylvania One Hundred Eighth Revised Page No. 3 TABLE OF CONTENTS Page Title Page Supplement No. 122 List of Changes Made by This Supplement 2 One Hundred Tenth Revised Table of Contents 3 One Hundred Ninth Revised Table of Contents 4 Fifth Revised Table of Contents Table of Contents 5 Eleventh Revised 6 One Hundred Fourth Revised Rules 1. Definitions 7 Fourth Revised 7(a) Fourth Revised 7(b) Original 2. Application for Service 2.1 Application Required 8 First Revised 2.2 Application Required 8 First Revised 3. Service Connections 3.1 Company Service Line 9 Original 3.2 Temporary Service Connection 9 Original 3.3 Company's Service Line in Advance of Street Improvement 10 Fifth Revised 3.4 Cusmer's Service Line 10 Fifth Revised Phase 1 of Replacements of Lead 10 Fifth Revised Cusmer-Owned Service Lines Phase 2 Replacements of 10(a) Original Lead Cusmer-Owned Service Lines Reporting, Cusmer Outreach, and 10(c) Original Funding for Phase 1 and Phase 2 Replacements 3.5 Separate Trench Required 10(c) Original 3.6 Tampering with Curb Sp 11 Original 3.7 Renewal of Service Line 11 Original 3.8 Location Change 11 Original 3.9 Use of Service 11 Original 3.10 Use of Service 12 First Revised 3.11 Upgrade/Extension of Service 12 First Revised Definitions 12 First Revised Extension of Service Bona 13 First Revised Fide Service Applicant Financing of Cusmer Advance 14 First Revised Indicates Change ISSUED: March 13, 2016 EFFECTIVE: March 16, 2017

4 Supplement No. 122 Fifth Revised Page No. 4 York, Pennsylvania Fourth Revised Page No. 4 TABLE OF CONTENTS (Continued) Rules, continued Page Non-Bona Fide Service Applicant 14 First Revised Refunds of Cusmer Advances 14 First Revised Alternative Arrangements 15 First Revised Rules Not Apply 15 First Revised System Improvements Taxes on Deposits 15 First Revised 4. Meter Service 4.1 Right Install 16 Original 4.2 Conditions Applicable Apartment Complex 16 Original Single-Point Meter Service 4.3 Conditions Applicable Condominium 18 Original Complex Single-Point Meter Service 4.4 Separate Meters for Centers, 21 Second Revised Apartments and Condominiums 4.5 Size of Meter 23 First Revised 4.6 Ownership and Location 23 First Revised 4.7 Meter Responsibilities 23 First Revised 4.8 Cost of Reinstallation 24 First Revised 4.9 Registration Conclusive 24 First Revised 4.10 Request Test 24 First Revised 4.11 Central Meter Reading 25 Second Revised 4.12 Meter Pits for Mobile Home Units 25 (a) Original 5. Public Fire Service 5.1 Hydrant Location 26 Original 5.2 Maintenance 26 Original 5.3 Allowable Use 26 Original 5.4 Unauthorized Use 27 Original 5.5 Change of Location 27 Original 5.6 Inspection 27 Original 6. Private Fire Service 6.1 When Private Fire Service Charge 28 First Revised Not Applicable 6.2 Installation 28 First Revised 6.3 Use of Water 28 First Revised 6.4 Location of Private Hydrants 28 First Revised 6.5 Location of Private Hydrants 28 First Revised ISSUED: March 13, 2017 EFFECTIVE: March 16, 2017

5 Supplement No. 101 Eleventh Revised Page No. 5 York, Pennsylvania Tenth Revised Page No. 5 TABLE OF CONTENTS (Continued) Rules, continued Page 7. Responsibility for Service 7.1 Limitation of Liability of Company 29 Original 7.2 Due Emergency 29 Original 7.3 Pressure Reducing Facilities 29 Original 8. Use of Building, Construction and Miscellaneous Purposes 8.1 Special Application 30 Original 8.2 Construction Water be Metered 30 Original 9. Discontinuance of Service 9.1 By Company 31 Second Revised 9.2 By Company 32 First Revised 9.3 By Company 32 First Revised 10. Payment 10.1 Free Service 33 Original 10.2 Place of Payment 33 Original 10.3 Meter Bills 33 Original 10.4 Payment by Mail 34 Sixth Revised 10.5 Late Payment Charge 34 Sixth Revised 10.6 Return Check Charge 35 Sixth Revised 11. General 11.1 Inspection 35 Sixth Revised 11.2 Rules Cannot be Varied 35 Sixth Revised 11.3 Deposits 35 Sixth Revised 11.4 Installation of Pumps 36 First Revised 11.5 Cross-Connections 36 First Revised 11.6 Prevention of Back Flow 37 First Revised 11.7 Availability of Service 37 First Revised 11.8 Drought Emergency Excess Use Charges 37 First Revised 11.9 Service New Construction or 38 Original Remodeled Buildings Waste of Water 38 Original This page left blank intentionally for future use 39 Original Indicates Change ISSUED: September 16, 2011 EFFECTIVE: Ocber 1, 2011

6 Supplement No. 121 To One Hundred Fourth Revised Page No. 6 York, Pennsylvania One Hundred Third Revised Page No. 6 Rules, continued TABLE OF CONTENTS (Continued) Page 12. State Tax Adjustment Surcharge 40 Forty-first Revised 13. Rate Schedules Meter Rates Schedule "A" - Gravity System Schedule "B" - Repumping System Flat Rates - Gravity System Schedule "C" - Building, Construction and Miscellaneous Schedule "D" - Fire Service Flat Rates - Repumping System Schedule "E" - Building, Construction and Miscellaneous Schedule "F" - Fire Service This page left blank intentionally for future use This page left blank intentionally for future use 41 Fourth Revised 42 Twenty-third Revised 43 Fifteenth Revised 44 Twenty-third Revised 45 Original 46 Twenty-first Revised 47 Ninth Revised 48 Thirty-first Revised 49 Original 50 Original 14. Drought Contingency Plan 51 Second Revised 15. Distribution System Improvement Charge 62 Second Revised 63 Second Revised 64 Second Revised 65 Fourth Revised 65(a) Original 66 Sixtieth Revised 16. Rider DS - Demand Based Service 67 First Revised Indicates Change ISSUED: November 3, 2016 EFFECTIVE: November 3, 2016

7 Supplement No. 53 Fourth Revised Page No. 7 York, Pennsylvania Third Page No. 7 RULES 1. Definitions 1.1 Wherever used in the Rules or elsewhere in the tariff of the Company, the following terms shall have the meaning hereinafter set forth: Company: Premises: Cusmer: Cusmer's Service Line: Company's Service Line: Residential Service: Commercial Service: and its duly authorized officers, agents and employees, each acting within the scope of his authority and employment. A single lot or piece of ground, gether with all buildings and structures, if any, erected thereon The party, either owner or tenant, contracting with the Company for water service for one or more families or for one or more business institutional units on one premises owned or tenanted by the party or parties. The connecting facilities from the Company's curb sp and curb box in and in a Cusmer's Premises. The connecting facilities between the Company's distribution main and a Cusmer's Service Line, in general consisting of a valve or corporation sp at the main, piping therefrom the street curb line, property line or edge of road right-of-way, terminating in a curb sp and curb box. Service supplied single premises residences, multiple premises residences where each unit or premise is served through a separate meter, and multiple premises with four (4) units or less provided at least one of the units is used for residential purposes. Service supplied multiple premises residences served through a single meter with five (5) units or more, private institutions and organizations such as hotels, offices, office buildings, retail and wholesale commercial establishments, laundries, churches, private schools and colleges, private hospitals, garage and service stations, restaurants and bars, retail florists, theaters, golf courses, private swim clubs, barber shops, warehouses, nurseries and other commercial establishments. Indicates Change ISSUED: August 30, 2001 EFFECTIVE: August 31, 2001

8 York, Pennsylvania Supplement No. 53 Fourth Revised Page No. 7(a) Third Page No. 7(a) Industrial Service: Public Service: Public Hydrant: Public Hydrant Privately Paid-for: Private Hydrant: Fire Lines: RULES 1. Definitions (Continued) Service supplied manufacturing or processing establishments such as facries, refineries, bottling plants, food processing plants, public utilities other than those engaged in supplying water and other manufacturing facilities. Service supplied municipal and governmental establishments such as public schools, post offices, libraries, public swimming pools, public parks, public hospitals and other municipal, county, state and federal establishments. Company owned and maintained hydrant available for use protect the general public. Paid for by a municipal government. The hydrant is located along a public road, street or highway. Company owned and maintained hydrant available for use protect the general public. Paid for by someone other than a municipal government. This type of situation exists when the municipal government does not feel there is adequate tax revenue in the area justify paying for the hydrant. The hydrant is located along a public road, street or highway. A privately owned and maintained hydrant not available protect the general public. In all cases the hydrant would be located on private property. If the hydrant is located along a public road or street it would be available the general public and would not be a private hydrant. a. Connected a private main (cusmer owned and maintained main)-charges would be for the first hydrant billed at the First Hydrant Rate plus any additional hydrant billed at the Each Additional Hydrant Rate. b. Connected a Company owned and maintained main - each separate hydrant should be billed at the First Hydrant Rate. These services are for lines that have aumatic sprinkler protection connected either a Company owned and maintained main or connected a cusmer owned and maintained main. The York Water Company will bill for each such system s connection (based upon size) a Company owned and maintained main. If the cusmer has their own internal main system there can be any number of aumatic sprinkler risers or fire hydrants connected the system. If such a line has only hydrants connected the cusmer owned system it is not a Fire Line. In order for it be a Fire Line aumatic sprinklers must be part of the system. Indicates Change ISSUED: August 30, 2001 EFFECTIVE: August 31, 2001

9 Supplement No. 120 York, Pennsylvania Original Page No. 7(b) RULES 1. Definitions (Continued) Service Line Valve: A device owned, maintained and controlled by the Company that can be turned an opened or closed position for the purpose of controlling the supply of water a mobile home unit and is comparable in function, ownership and responsibility a curb sp. Indicates Change ISSUED: Ocber 24, 2016 EFFECTIVE: Ocber 24, 2016

10 Supplement No. 15 First Revised Page No. 8 York, Pennsylvania Original Page No. 8 Application Required RULES (Continued) 2. Application for Service 2.1 Application for water service shall be made by each Cusmer or his duly authorized agent upon a form provided therefore by the Company and shall be signed by the Cusmer or his duly authorized agent. There shall be a new application for service upon any change from any service contract. Each service contract shall continue in force until cancelled by notice of cancellation by one party the other. 2.2 The Cusmer's application for service, the rules and regulations promulgated by the Pennsylvania Public Utility Commission and published at 52 Pa. Code, Chapter 56, as amended from time time, and the rules and regulations contained herein are a part of the contract with each Cusmer, and each Cusmer agrees be bound thereby. The rules and regulations promulgated by the Pennsylvania Public Utility Commission and published at 52 Pa. Code, Chapter 56, as amended from time time, are incorporated herein by reference and are made a part hereof. Indicates Change ISSUED: April 10, 1995 EFFECTIVE: June 9, 1995

11 Supplement No. 122 York, Pennsylvania Original Page No. 9 Company Service Line RULES (Continued) 3. Service Connections 3.1 The Company will make all connections its mains, furnish, install and maintain all service lines from the main the curb, including corporation sp, curb box and service pipe, all of which will be the property of the Company and shall always be accessible and under its control. The Company reserves the right determine the size, kind and location of the Company Service Line. Where the Cusmer requests a service line larger than that deemed necessary by the Company, the Company will install the larger service, provided the Cusmer pays the additional cost for the larger service. The Company reserves the right determine the number of Company Service Lines necessary serve any one Premises. The Company will install a service line from its main only when a main of the Company abuts the Premises be served and extends the point of introduction of service the Premises. The point of introduction of service shall be a point on a straight line at right angles the curb line, property line or edge of road right-of-way and extending the structure on the Premises receiving the principal use. Temporary Service Connection 3.2 When an applicant for water service or Cusmer requests a service connection an existing main, which in the opinion of the Company may be temporary in nature, the applicant or Cusmer shall make an advanced payment the Company in the amount of the estimated cost of installing and removing the Company's Service Line. The cost so advanced will be retained by the Company, without interest, until the applicant or Cusmer shall have paid for water service an amount equal the amount advanced, plus the Company's cost of such water service, at which time the Company will refund the advanced payment the applicant or Cusmer. ISSUED: February 1, 1990 EFFECTIVE: April 2, 1990

12 Supplement No. 122 Fifth Revised Page No. 10 York, Pennsylvania Fourth Page No. 10 RULES (Continued) 3. Service Connections (Continued) Company's Service Line in Advance of Street Improvement 3.3 If the Owner of a parcel of ground desires a service line installed the curb in advance of street improvement and/or where there is no present demand for a supply of water, such Owner may be required make a payment which will not exceed the estimated cost of installing the Service Line, which payment shall be refunded if and when service is initiated. All or any part of the payment that is not refunded within 10 years following the payment the Company will be retained by the Company. Cusmer's Service Line 3.4 Each Cusmer's Service Line shall be installed and maintained by or on behalf of such Cusmer at his expense. The Company may specify the size, kind and quality of the material used in the Cusmer's Service Line and may approve the location and depth thereof, and it shall be equipped at an accessible point within the Premises with a sp and waste cock of a pattern and material approved by the Company. Failure maintain the Cusmer Service Line may be grounds for termination of service Phase 1 Replacements of Lead Cusmer-Owned Service Lines Notwithstanding Rule 3.4, York Water may replace lead cusmer-owned service lines that are discovered when the Company replaces lead Company-owned service lines that exist in the Company s system ( Phase 1 replacements ). If a lead cusmer-owned service line that qualifies as a Phase 1 replacement is leaking or otherwise defective at the time it is discovered, the cusmer will not be required repair the line prior it being replaced by York Water. Subsequent replacing the cusmer-owned service line, the cusmer s ownership of and duty maintain the service line will continue as provided under Rule 3.4. York Water shall replace these cusmer-owned service lines at its initial cost and shall recover the costs in future rate proceedings as provided in the Commission-approved order and settlement at Docket No. P Indicates Change ISSUED: March 13, 2017 EFFECTIVE: March 16, 2017

13 Supplement No. 122 York, Pennsylvania Original Page No. 10(a) RULES (Continued) 3. Service Connections (Continued) Phase 2 Replacements of Lead Cusmer-Owned Service Lines Notwithstanding Rule 3.4, York Water may, from time time, replace lead cusmer-owned service lines whenever they are discovered, regardless of the material used for the Company-owned service line ( Phase 2 replacements ). If a lead cusmerowned service line that qualifies as a Phase 2 replacement is leaking or otherwise defective at the time it is discovered, the cusmer will not be required repair the line prior it being replaced by York Water. Subsequent replacing the cusmer-owned service line, the cusmer s ownership of and duty maintain the service lines will continue as provided under Rule 3.4. If the cusmer chooses use his or her own plumber/contracr replace the cusmer-owned service line, the Company shall make a payment the cusmer wards the replacement cost of the lead cusmer-owned service line up an amount not exceed the lesser of the actual replacement cost or the Company s average contracted cost for replacing the cusmer-owned lead service in the year the replacement is made, based upon the length of the service line replacement. The Company may offer engage its own contracrs undertake the replacement and then bill the cusmer for any difference between the actual cost and the maximum payment amount. The cost incurred by York Water for these Phase 2 replacements shall be recoverable in future rate proceedings as provided in the Commission-approved order and settlement at Docket No. P When the replacement is undertaken by the Company, the cusmer shall be permitted pay any difference between the actual cost and the allowed average cost as a lump sum, or as an amount added the cusmer bill, be paid over a reasonable period not exceed one year. If the difference is included on the cusmer bill, the provisions of 52 Pa. Code shall apply, and the Company shall not terminate for non-payment of the amount included on the cusmer s bill. The Company shall not charge interest on any payment period for the difference, other than interest for late payment. If the Company is unable collect the difference from a cusmer and the difference or any portion is written off as uncollectible, York Water will be permitted include the uncollected amount in the mechanism for recovery of the cost of replacing the cusmer-owned lead service lines as provided in the Commission-approved order and settlement at Docket No. P Indicates Change ISSUED: March 13, 2017 EFFECTIVE: March 16, 2017

14 Supplement No. 122 York, Pennsylvania Original Page No. 10(b) RULES (Continued) 3. Service Connections (Continued) If York Water uses its own contracrs replace the lead cusmer-owned service line, there will be a 12-month warranty from the contracr, and the cusmer will be required sign an agreement authorizing York Water or its contracrs enter the cusmer s property replace the service line. The Company will resre the property as nearly as practicable its former condition York Water shall only make payments ward the cost of up 400 Phase 2 replacements each year from March 8, 2017; provided, however, that York Water may petition the Commission increase this number if it demonstrates that 400 per year is inadequate replace all requests for replacement. In the event less than 400 cusmerowned services are replaced in a year, the difference between 400 and the actual number replaced shall be added the number of Phase 2 replacements that may be undertaken in subsequent years. In the event the number of eligible Phase 2 replacements exceed the number of replacements authorized under this Rule , York Water will process requested replacements on a first-come, first served basis; provided, however, that if water test results reveal an exceedance of 15 parts per billion ( ppb ), then York Water may prioritize such cusmer for replacement If a cusmer has replaced their cusmer-owned lead service line within four years of March 8, 2017 (on or after March 8, 2013), and the Company s representative visits the site and determines that the service line has been replaced, and the cusmer provides the Company with a paid invoice, a certification from a certified plumber, and other documentation as determined by the Company demonstrate that a lead cusmer-owned service line was replaced, the Company will offer a cash payment as follows: between 3 and 4 years from March 8, 2017: 20% of Company s current contracr lump sum rate; between 2 and 3 years: 40%; between 1 and 2 years: 60%; and in the past year: 80%. Payment not exceed actual cost on invoice Rule shall be effective for nine years from March 8, York Water may petition the Commission extend the term of this tariff rule, as provided in the Commission-approved order and settlement at Docket No. P Indicates Change ISSUED: March 13, 2017 EFFECTIVE: March 16, 2017

15 Supplement No. 122 York, Pennsylvania Original Page No. 10(c) RULES (Continued) 3. Service Connections (Continued) Reporting, Cusmer Outreach, and Funding for Phase 1 and Phase 2 Replacements York Water shall provide reports, undertake cusmer outreach and seek out opportunities for funding of cusmer-owned lead service line replacements as provided in the Commission-approved order and settlement at Docket No. P Separate Trench Required 3.5 Cusmer's Service Line shall not occupy the same trench with, or be placed within 18 inches of any sewer pipe or any facility of any other public service company, except that a common trench may be ledged for the service if approved by the Company, and shall not pass through any Premises other than those serviced by such Cusmer's Service Line. Indicates Change ISSUED: March 13, 2017 EFFECTIVE: March 16, 2017

16 Supplement No. 66 York, Pennsylvania Original Page No. 11 RULES (Continued) 3. Service Connections (Continued) Tampering with Curb Sp 3.6 The curb sp shall not be operated by Cusmer except with the written consent of the Company. Renewal of Service Line 3.7 Where renewal of a Company's Service Line is found be necessary, the Company will renew said service line in the same location as the old one, only if the Cusmer agrees renew the Cusmer's Service Line at the same time and if renewal is found be necessary. Should the Cusmer, for his convenience, request that the service be renewed using larger size materials than that deemed necessary by the Company, the Company will renew the service using the larger size materials, provided the Cusmer pays the additional cost thereof. Location Change 3.8 When a Cusmer desires a change in location of an existing Company Service Line, the cost of cutting off, disconnecting and abandoning the old service line and any additional cost incurred in installation of the new service line shall be borne by the Cusmer. The Company will lay the new service line at the location desired after payment of the estimated costs of removing the old service line and installing the new service line. Use of Service 3.9 The Cusmer shall neither use, or permit the use of water service available for any other purposes or at any other place than stated in his application for the water service. Water service not supplied by the Company shall not be connected or crossconnected with the Company's facilities, except with the written consent of the Company. ISSUED: February 1, 1990 EFFECTIVE: April 2, 1990

17 Supplement No. 21 First Revised Page No. 12 York, Pennsylvania Original Page No. 12 RULES (Continued) 3. Service Connections (Continued) 3.10 The Cusmer shall not, without the written consent of the Company, resell or give away the water service supplied or available such Cusmer Upgrade/Extension of Service Definitions The following definitions shall be applicable this Section 3.11 of the Company's Rules: Annual line extension costs - The sum of the Company's additional annual operating and maintenance costs, debt costs and depreciation charges associated with the construction, operating and maintenance of a line extension for a bona fide service applicant. Annual revenue - The Company's expected additional annual revenue from a line extension a bona fide service applicant based on the Company's currently effective tariff rates and on the average annual usage of cusmers similar in nature and size the bona fide service applicant. Applicant - A developer/owner or occupant of any property within the certificated service terriry of the Company, who requests the Company extend its system serve such property. Bona fide service applicant - An applicant for water service an existing or proposed structure within the Company's certificated service terriry for which a valid occupancy or building permit has been issued if the structure is either a primary residence of the applicant or a place of business. An applicant shall not be deemed a bona fide service applicant if: (1) applicant is requesting water service a building lot, subdivision or a secondary residence; (2) the request for service is part of a plan for the development of a residential dwelling or subdivision; or (3) the applicant is requesting special utility service. Debt costs - The Company's additional annual cost of debt associated with financing a line extension investment for a bona fide service applicant based on the current debt ratio and weighted long-term debt cost rate for the Company. Depreciation charges - The Company's additional annual depreciation charges associated with the specific line extension investment be made for a bona fide service applicant based on the current depreciation accrual rates for the Company. Line extension - An addition the Company's main line which is necessary serve the premises of a cusmer. Operating and maintenance costs - The Company's average annual operating and maintenance costs associated with serving an additional cusmer, including cusmer accounting, billing, collections, water purchased, power purchased, chemicals, and other variable costs based on the current tal company level of such costs, as well as costs particular the specific needs of that cusmer, such as line flushing. (Indicates Change) ISSUED: November 4, 1996 EFFECTIVE: January 3, 1997

18 Supplement No. 21 First Revised Page No. 13 York, Pennsylvania Original Page No. 13 RULES (Continued) 3. Service Connections (Continued) Definitions (Continued) Special utility service - Residential or business service which exceeds that required for ordinary residential purposes. Special utility service may include: installation of facilities such as oversized mains, booster pumps and srage tanks as necessary provide adequate flows or meet required pressure criteria, and service large water consuming commercial and industrial facilities. Extension of Service Bona Fide Service Applicant Upon written request by a bona fide service applicant, the Company shall construct a line extension within its certificated service terriry consistent with the following: (A) (B) A line extension a bona fide service applicant shall be funded without a Cusmer Advance where the annual revenue from the line extension will equal or exceed the Company's annual line extension costs. If the annual revenue from the line extension will not equal or exceed the Company's annual line extension costs, a bona fide service applicant may be required provide a Cusmer Advance the Company's cost of construction for the line extension, pursuant a Main Extension Agreement. The Company's investment for the line extension shall be the portion of the tal construction costs which generate annual line extension costs equal annual revenue from the line extension. The Cusmer Advance amount shall be determined by subtracting the Company's investment for the line extension from the tal construction costs. The Company's investment for the line extension shall be based on the following formula, where X equals the Company's investment attributed each bona fide service applicant: (D) X = [AR - OM] divided by [I + D]; and AR = the Company's annual revenue from the cusmer OM = the Company's operating and maintenance costs for the line extension I = the Company's current debt ratio multiplied by the Company's weighted long-term debt cost rate D = the Company's current depreciation accrual rate Two or more bona fide service applicants may join in a request for service with the AR and OM components of the above formula adjusted reflect the number of applicants. Joint requests may include only bona fide service applicants be subject this rule. A joint request that includes any non bona fide service applicant shall be subject Rule The Company shall require a bona fide service applicant pay, in advance, a reasonable charge for service lines and equipment installed on private property for the exclusive use of the applicant. Indicates Change ISSUED: November 4, 1996 EFFECTIVE: January 3, 1997

19 Supplement No. 21 First Revised Page No. 14 York, Pennsylvania Original Page No. 14 RULES 3. Service Connections (Continued) Financing of Cusmer Advance for Bona Fide Service Applicant If a Cusmer Advance is required from a bona fide service applicant for service and the bona fide service applicant is unable advance the entire amount due, the Company shall do one of the following: (A) Allow the applicant pay the Cusmer Advance over a period of not less than three (3) years, with the Company recovering financing costs equal the Company's weighted cost of long term debt. The Company may require the applicant deposit up one-third of the tal Cusmer Advance prior extending service; or (B) Provide information the applicant on financial institutions that may offer financing the applicant for the line extension. Upgrade/Extension of Service for Non-Bona Fide Service Applicant Whenever an applicant other than a bona fide service applicant requests the Company extend its system serve such property, the Company shall agree extend its service upon applicant's execution of a Main Extension Agreement and applicant's payment of a Cusmer Advance in an amount as determined below. A Master Agreement may be executed for extensions that are be made in phases over a period of time, with execution of a separate Agreement and payment of a separate Cusmer Advance for each phase. In addition, if service the applicant requires the use of facilities that were financed by a previous Cusmer Advance, which has not been fully refunded, the Company, in its discretion, may require the applicant deposit an additional amount as a Cusmer Advance finance a reasonable portion of such previously constructed facilities. Any additional amount so advanced shall be paid, as a refund, the other applicant that previously financed such facilities. The amount of the Cusmer Advance be deposited with the Company shall be an amount in cash equal the estimated cost of the extension, including the estimated cost of mains and of other facilities which the Company has determined be required render adequate service, but excluding the cost of public fire hydrants and hydrant laterals and necessary meters and Company service lines. Provided, however, that unless otherwise specified in the Main Extension Agreement, deposits made for additional facilities other than the main extension, such as booster pumps, srage tanks and the like, are Contributions in Aid of Construction which will not be subject refund under Rule Upon completion of the installation, the Company shall provide applicant with a statement of the actual costs of construction. If the actual cost of construction is less than the estimated construction cost deposited with the Company, the Company shall return applicant such difference. If the actual cost of construction is greater than the estimated cost of construction deposited with the Company, then applicant shall make an additional deposit equal such difference. Water service the project may be refused, or discontinued subject the Commission's regulations, for failure make such additional deposit. Interest will not be paid on Cusmer Advances. Indicates Change ISSUED: November 4, 1996 EFFECTIVE: January 3, 1997

20 Supplement No. 21 First Revised Page No. 15 York, Pennsylvania Original Page No. 15 RULES (Continued) 3. Service Connections (Continued) Refunds of Cusmer Advances Refunds of Cusmer Advances will be paid the applicant during the ten (10) year period beginning with the date of the Agreement. For developments that are be completed in phases under a Master Agreement, refunds may be paid until ten (10) years after the date of the Main Extension Agreement for the final phase. A Per-Cusmer Refund Amount shall be paid for each additional permanent Cusmer for whom a company service main shall be directly attached applicant's Main Extension, except that no refund will be paid with respect the attachment of the applicant if the applicant is a bona fide service applicant. The amount of the Per-Cusmer Refund shall be determined as follows: 1. For attachments made during the first three years following the date of the Agreement, the refunds will be equal two (2) times the first year's annual revenue received from each additional cusmer. 2. For attachments made during the fourth and subsequent years following the date of the Agreement, the refund will be equal the first year's annual revenue received from each additional cusmer. Provided, however, that the tal amount refunded shall not exceed the actual amount of the Cusmer Advance, excluding any additional percentage amount related income taxes that was charged the applicant. Provided, further, that any additional percentage amount related income taxes that was charged the applicant after June 12, 1996 will be refunded immediately. Interest will not be paid on Refunds. All or any part of the Cusmer Advance not refunded within such 10-year period shall be considered a Contribution in Aid of Construction the Company. Alternative Arrangements Permitted The Company, in its discretion, and with the agreement of the applicant, may enter in a Main Extension Agreement with alternative terms and conditions for funding of extensions if the Company concludes that the extension will provide a reasonable return or otherwise is in the long term interest of its cusmers. Rules Not Apply System Improvements The foregoing provisions shall not be construed apply an extension, or portion thereof, undertaken for general system improvement or connect any water company or municipally-owned system acquired by the Company the Company's distribution system. Taxes on Deposits for Construction & Cusmer Advances The Company will pay income taxes on any deposit, Cusmer Advance, Contribution in Aid of Construction or other like amounts received from an applicant which shall constitute taxable income as defined by the Internal Revenue Service. Such income taxes shall be segregated in a deferred account for inclusion in rate base in a future rate case proceeding. Such income taxes associated with a deposit or advance will not be charged the specific deposir of capital. Indicates Change ISSUED: November 4, 1996 EFFECTIVE: January 3, 1997

21 York, Pennsylvania Original Page No. 16 RULES (Continued) 4. Meter Service Right Install 4.1 Metered service shall be required throughout the Company's service terriry unless otherwise permitted under Rate Schedules C, D, E and F. In the gravity service system where residential dwelling houses were previously billed using a flat rate tariff schedule, service shall not be resumed by the Company residences formerly billed on a flat rate basis until a meter is installed. Conditions Applicable Apartment Complex Single-Point Meter Service 4.2 Single-point meter service, after application therefor by the Cusmer, will be supplied an apartment complex consisting of two or more buildings containing apartment dwelling units gether with any related facilities requiring water service (collectively called the "apartment complex"), where all the following conditions are satisfied: 1. There shall be only one Cusmer contracting for water service the entire apartment complex. 2. The apartment complex shall be located on a single tract of land, which is not divided by a public street, and the Cusmer, who contracts for water service, shall be the Owner of the entire apartment complex. 3. The waterworks facilities on the Cusmer's Premises, beyond the curb sp and curb box, including all facilities except the water meter owned by the Company shall be: (a) (b) Owned by the Cusmer and constructed at the Cusmer's sole expense; Constructed and located in such manner: (1) that it is possible for the Water Company provide water service through a single service line connected the Company's main at a single point and (2) that no waterworks facilities of the Cusmer are located in public streets, roads or highways; and Indicates Change ISSUED: February 1, 1990 EFFECTIVE: April 2, 1990

22 York, Pennsylvania Original Page No. 17 RULES (Continued) 4. Meter Service (Continued) Conditions Applicable Apartment Complex Single-Point Meter Service (Continued) (c) Maintained, replaced, repaired and reconstructed by the Cusmer at the Cusmer's sole expense. 4. The Cusmer shall provide, at the Cusmer's sole expense, a meter vault approved by the Company which shall be constructed, maintained, replaced, repaired and reconstructed by the Cusmer at a location acceptable the Company. 5. No fire hydrant shall be connected the Cusmer's Service Line or waterworks facilities beyond the meter of the Company. If private fire hydrant service is desired, the Cusmer shall provide, at the Cusmer's sole expense, a separate service line from the end of a service line provided by the Company at the curb, and only fire hydrants or aumatic sprinkler fire protection shall be connected such separate service line of the Cusmer. 6. The Owner of the apartment complex shall provide the Water Company with a map showing the location of all waterworks facilities located within the single tract of land. 7. Where water service is presently furnished an apartment complex, other than by single-point meter service, the Company will provide single point meter service only where the Cusmer, in addition satisfying the foregoing conditions, shall make, at the Cusmer's sole expense, all changes in waterworks facilities, located within the tract of land or in any structure which the Company deems necessary. If the Company has any amount invested in such waterworks facilities the Cusmer shall reimburse the Company for its investment therein. Indicates Change ISSUED: February 1, 1990 EFFECTIVE: April 2, 1990

23 York, Pennsylvania Original Page No. 18 RULES (Continued) 4. Meter Service (Continued) Conditions Applicable Apartment Complex Single-Point Meter Service (Continued) Where single-point meter service has been provided and where, there-after, there is a change of ownership as any of the buildings erected on any part of the single tract of land so that not all buildings comprising the entire apartment complex are owned by the Cusmer owning that portion of the service line which connects directly the Company's waterworks facilities, the Company shall after 60 days' notice, terminate the water service buildings not owned by the Cusmer owning such connecting service line, and water service such other buildings shall be provided only after such other buildings shall be connected, at the sole expense of the new Cusmer or Cusmers, by a separate service line or separate service lines the Company's waterworks facilities. If such new Cusmer desires receive single-point meter service for such other buildings, such service shall be provided thereafter only after the new Cusmer has satisfied conditions 1 through 7 above, as such other buildings. Conditions Applicable Condominium Complex Single-Point Meter Service 4.3 Single point meter service, after application therefor by the Cusmer, will be supplied a condominium complex consisting of two or more buildings containing condominium dwelling units gether with any related facilities requiring water service as which there is common ownership and operation in the manner provided by the Unit Property Act of July 3, 1963, P.L. 196, 68 P.S , et seq. (collectively called the condominium complex), where all the following conditions are satisfied: 1. The Cusmer shall be the duly authorized agent of the persons owning property interests in the condominium complex and shall be the person or group of persons who or which has full authority enter in the contract for service in behalf of such Owners. ISSUED: February 1, 1990 EFFECTIVE: April 2, 1990

24 York, Pennsylvania Original Page No. 19 RULES (Continued) 4. Meter Service (Continued) Conditions Applicable Condominium Complex Single-Point Meter Service (Continued) 2. The condominium complex shall be located on a single tract of land which is not divided by a public street. 3. The waterworks facilities within the condominium complex and beyond the curb box and curb sp, including all facilities except the water meter owned by the Company, shall be: (a) Owned by the persons owning property interested in the condominium complex and constructed at the sole expense of such Owners. (b) (c) Constructed and located in such manner: (1) that it is possible for the Company provide water service through a single service line connected the Company's main at a single point, and (2) that no waterworks facilities, which are owned by persons owning property interests in the condominium complex, are located in public streets, roads or highways; and Maintained, replaced, repaired and reconstructed by the persons owning property interests in the condominium complex at the sole expense of such persons. 4. A meter vault approved by the Company shall be constructed, maintained, replaced, repaired and reconstructed at a location acceptable the Company, by the persons owning property interests in the condominium complex and at their sole expense. Indicates Change ISSUED: February 1, 1990 EFFECTIVE: April 2, 1990

25 York, Pennsylvania Original Page No. 20 RULES (Continued) 4. Meter Service (Continued) Conditions Applicable Condominium Complex Single-Point Meter Service (Continued) 5. No fire hydrant shall be connected, beyond the Company's meter, or the service line which provides water service for the condominium complex. If private fire hydrant service is desired, the persons owning property interests in the condominium complex shall provide, at their sole expense, a separate service line from the end of a service line provided by the Company, at the curb, and only fire hydrants or aumatic sprinkler fire protection shall be connected such separate service line of the Cusmer. 6. The persons owning property interests in the condominium complex shall provide the Company with a map showing the location of all waterworks facilities located within the single tract of land. 7. Where water service is presently furnished a condo-minimum complex, other than by single-point meter service, the Company will provide single-point meter service only where the persons owning property interests in the condominium complex, in addition satisfying the foregoing conditions, shall make, at their sole expense, all changes in waterworks facilities, located within the tract of land, or in any structure which the Company deems necessary. If the Company has any amount invested in such waterworks facilities, the persons owning the property interests in the condominium complex shall reimburse the Company for its investment therein. ISSUED: February 1, 1990 EFFECTIVE: April 2, 1990

26 Supplement No. 20 First Revised Page No. 21 York, Pennsylvania First Page No. 21 RULES (Continued) 4. Meter Service (Continued) Conditions Applicable Condominium Complex Single-Point Meter Service (Continued) Where single-point service has been provided and where, thereafter, any building which was part of the original condominium complex is no longer part of the same condominium complex, the Company, after 60 days' notice, shall terminate water service any such building, and water service any such building shall be provided only after the Owner or Owners of any such building shall connect such building, at his or their sole expense, by a separate service line or separate service lines the Company's waterworks facilities. If the Owner or Owners of two or more of such buildings desire receive singlepoint meter service for any such buildings, such service shall be provided only upon compliance with conditions for service an apartment complex or a condominium complex, as applicable. Conditions Applicable Municipalities or Authorities Single-Point Meter Service 4.3(a) When a York County municipality or authority has exhausted all alternatives obtaining an adequate high quality source of supply, they may apply the Company for the purchase of water. Upon the execution of an agreement satisfacry the Company, the Company will supply water the municipality or authority for resale within the service boundaries of the municipality or authority. The Company will bill the municipality or authority at the Company's single-point meter rate where monthly the number of cusmers of the municipality or authority times 1200 gallons will be billed at the first block rate and any remainder consumption will be billed at the regular block rate or rates. Separate Meters for Centers, Apartments and Condominiums 4.4 Separate meter may be installed for each individual unit in a commercial or industrial center or for each dwelling or other unit in an apartment building or complex or condominium building or complex as herefore defined after application therefor by the Owner or Owners thereof or by their duly authorized agent, where all the following conditions are satisfied: Indicates Change 1. The service line from the Company's main the building or buildings containing such units be metered is less than 100 feet. If the distance is greater than 100 feet, the meter shall be installed in a meter pit or meter pits located at the curb line or the option for separate meters cannot be elected. ISSUED: September 5, 1996 EFFECTIVE: September 5, 1996

27 York, Pennsylvania Original Page No. 22 RULES (Continued) 4. Meter Service (Continued) Separate Meters for Centers, Apartments and Condominiums (Continued) 2. The Cusmer's service lines, materials and installation shall be in accordance with Company specifications and inspection. 3. Each meter shall be installed in a suitable place protected from the elements and from other abuse and shall be accessible Company personnel for periodic readings and exchanges. 4. An accessible valve or curb sp shall be installed by the Owner or Owners so as provide Company control of the water service from outside each such unit. 5. The Owner or Owners shall make provision, at his/their expense in accordance with Company specification and inspection, for the installation of remote meter readers wired a central location approved by the Company and readily available Company personnel. 6. Each such meter shall be installed so as properly record all water flow each such unit and an additional meter shall be installed record any water used by the Owner or Owners for purposes other than that which shall be the responsibility of the other respective Cusmers. 7. The Owner or Owners shall be responsible for water service charges when such unit is vacant after a tenant moves out and before a new tenant moves in. ISSUED: February 1, 1990 EFFECTIVE: April 2, 1990

28 Supplement No. 15 First Revised Page No. 23 York, Pennsylvania Original Page No. 23 Size of Meter RULES (Continued) 4. Meter Service (Continued) 4.5 The Company reserves the right determine the size of the meter be installed. Ownership and Location 4.6 All meters will be furnished by and remain the property of the Company, and be accessible and subject its control. They shall be conveniently located at a point approved by the Company so as control the entire supply, and a proper place and protection therefore (and a meter vault if deemed necessary by Company) shall be provided by the Cusmer at Cusmer's expense. A sp cock will be placed on the service line on the street side of and near the meter, and a suitable backflow prevention device as required per Rule 11.6 on the other side of the meter; with the Company furnishing, owning and maintaining the sp cock, meter and the residential backflow preventer. Meter Responsibilities All cusmer-owned equipment, including but not limited the meter pit, shuff valves, check valves, backflow preventers (see Rule 11.6), etc., shall be properly maintained so as not present a hazard the general public and Company personnel. The design of Cusmer facilities shall be such that Company personnel may provide proper maintenance, as determined by the Company Companyowned equipment. 4.7 The Company will furnish and install for each cusmer, without charge, a suitable meter and will keep the same in good repair. The cusmer, however, shall properly protect the meter from damage by frost or other causes and shall be held responsible for repairs or replacement of the meter made necessary by the negligence or intentional act of the cusmer. Indicates Change ISSUED: April 10, 1995 EFFECTIVE: June 9, 1995

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